Slide 1: Advancing Materials Innovation: Second Quarter 2021 Results
Advancing Materials Innovation NASDAQ: GSM Second Quarter 2021 Results August 24th 2021 1 ferroglobe
Slide 2: Forward-Looking Statements and non-IFRS Financial Metrics
Forward-Looking Statements and non-IFRS Financial Metrics 2 This presentation contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looki
Slide 3: Table of Contents
TABLE OF CONTENTS I. Q2 2021 Business Review II. Q2 2021 Financial Review III. Update on Strategic Plan IV. Appendix — Supplemental Information
Slide 4: Opening Remarks
OPENING REMARKS Q2 reflects an acceleration in our overall performance due to robust market conditions and execution of the strategic plan, contributing to a return to re net profit Quarterly results adversely impacted by several one-off cost items, as well as higher energy costs @ Ferroglobe Succes
Slide 5: Opening Remarks
OPENING REMARKS 4 Q2 reflects an acceleration in our overall performance due to robust market conditions and execution of the strategic plan, contributing to a return to positive net profit Quarterly results adversely impacted by several one-off cost items, as well as higher energy costs Successful
Slide 6: I. Q2 2021 Business Review
I. Q2 2021 Business Review
Slide 7: Key Highlights
KEY HIGHLIGHTS 6 Q2-21 results: Sales of $418.5 million, compared to $361.4 million in Q1-21, and $250.0 million in Q2-20 Adjusted EBITDA of $34.1 million compared to $22.1 million in Q1-21, and $22.4 million in Q2-20 Return to positive net profit of $0.7 million, compared to net loss of $(68.5) mil
Slide 8: Product Category Snapshot: Silicon Metal
PRODUCT CATEGORY SNAPSHOT Silicon Metal 7 Sequential quarters EBITDA evolution ($m) Commentary Volume trends Pricing trends ($/mt) Average realized price up 2.7% during the quarter Volumes increased by 9.9% based in capacity increase Cost increase driven by rising energy price in Spain, ($3.8mm) and
Slide 9: Product Category Snapshot: Silicon-Based Alloys
PRODUCT CATEGORY SNAPSHOT Silicon-Based Alloys 8 Volume trends Pricing trends ($/mt) Sequential quarters EBITDA evolution ($m) Commentary Average realized selling price up 9.9% Volume increased by 5.9%, driven primarily by ferrosilicon (steel) followed by foundry (auto) Cost increase predominantly r
Slide 10: Product Category Snapshot: Manganese-Based Alloys
PRODUCT CATEGORY SNAPSHOT Manganese-Based Alloys 9 Volume trends Pricing trends ($/mt) Sequential quarters EBITDA evolution ($m) Commentary Average realized selling price up 20.5% Volume decline of 5.9% driven by delays in shipping out finished goods Improved fixed cost absorption were offset by inc
Slide 11: II. Q2 2021 Financial Review
II. Q2 2021 Financial Review
Slide 12: Income Statement Summary
INCOME STATEMENT SUMMARY Q2-21 vs. Q1-21 11 Sales increase driven by higher average prices (10%) and increase in volumes (6%) Cost of sales as a % of sales was lower than previous quarter as a result of the improvement in sale prices and a reclassification from this account to Other operating expens
Slide 13: Adjusted EBITDA Bridge Q1-21 to Q2-21
ADJUSTED EBITDA BRIDGE Q1-21 to Q2-21 ($m) 12 Volume: 6% increase vs prior quarter, attributable to stronger silicon metal and silicon-based alloys demand, partially offset by manganese based alloys Price: Average realized selling price for the main products increased 11% vs prior quarter on the bac
Slide 14: Balance Sheet Summary
BALANCE SHEET SUMMARY 13 Unaudited Financial Statements Gross debt excludes bank borrowings on factoring program at Jun. 30 2021 and Dec. 31, 2020 , and on the A/R securitization at Jun. 30, 2020 Cash and restricted cash includes the following as at the respective period ends: Jun. 30, 2020 – Unrest
Slide 15: Cash Flow Summary
CASH FLOW SUMMARY 14 Free cash flow is defined as ‘Cash Flow From Operating Activities’ less ‘Payments for Capital Expenditure’ $’000 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 EBITDA 22,093 (12,242) (630) (18,898) 31,943 Non-cash items 620 33,379 2,014 36,563 65 Changes in Working capital 11,904 2,484 3,320 668
Slide 16: Financing Update
FINANCING UPDATE 15 Subsequent Events: July 30th marked the “Transaction Effective Date” under the lock-up agreement date March 27th Completion of the following financing transactions: Extension of the maturity of the prior Senior Notes from March 31, 2022 to December 31, 2025, — 98.588% of the prio
Slide 17: III. Update on Strategic Plan
III. Update on Strategic Plan
Slide 18: Strategic Plan Delivery During 1H-21
strategic plan delivery during 1h-21 Footprint Optimization — process in Spain complete — restructuring process in France still underway Centralized Procurement* — new organization working well — continued benefit from new tenders (consumables, packaging, parts, subcontracting), as well as identific
Slide 19: Q&A
Q&A
Slide 20: IV. Appendix – Supplemental Information
IV. Appendix – Supplemental Information
Slide 21: Appendix: Quarterly Sales and Adjusted EBITDA
APPENDIX Quarterly sales and Adjusted EBITDA 20 Note: The amounts for prior periods have been restated to show the results of the Company’s Spanish hydroelectric plants within (Loss) profit for the period from discontinued operations and therefore these results are also excluded from adjusted EBITDA
Slide 22: Appendix: Gross Debt at June 30, 2021
APPENDIX Gross debt at June 30, 2021 21 ($’000) Current Non-current Total balance sheet Less operating leases (1) Less LBP Factoring(2) Gross debt Bank borrowings 85,015 4,871 89,886 (84,761) 5,125 Lease liabilities 8,709 12,995 21,704 (21,009) 695 Debt instruments (5) 10,858 386,060 396,918 396,918
Slide 23: Thank You
THANK YOU www.ferroglobe.com 22 ferroglobe